Delhivery Stock Rises As Canadian Pension Fund Offloads Stake

Shares of Delhivery Ltd. pared gains after rising over 3% as the Canada Pension Plan Investment Board offloaded its entire stake via block trades for a total deal value of Rs 885.7 crore.

The private equity investor, which operates as CPP Investments, offered 2.34 crore shares or a 3.17% stake in the logistics solutions provider, according to the term sheet viewed by NDTV Profit. The shares were offered at a price range of Rs 378–389 apiece, a discount of 0.85% to the previous close. The trade is expected to be settled on Thursday. BofA Securities India Ltd. is the sole manager of the deal, according to the term sheet.

Post the potential block deal, the investment management organisation will exit by selling its entire stake in Delhivery. CPP Investments had a 5.96% stake in the company as of the quarter ended March, according to the data from the exchanges.

In April, CPP Investments pared off a 2.8% stake in the supply chain and logistics firm for Rs 908 crore through an open-market transaction. Capital Group, through two different funds, bought 1.59 crore shares (2.16%) for Rs 707.7 crore. Fidelity Investments had also invested Rs 166.6 crore in Delhivery for 37.5 lakh shares (0.48%).

Delhivery's stock rose as much as 3.02% during the day to Rs 403.65 apiece on the NSE. It was trading 0.74% higher at Rs 394.7 apiece, compared to a 0.12% decline in the benchmark Nifty as of 9:30 a.m.

The share price has declined 1% in the last 12 months but risen 0.92% on a year-to-date basis. The total traded volume so far in the day stood at 738 times its 30-day average. The relative strength index was at 42.

Seventeen out of the 24 analysts tracking the company have a 'buy' rating on the stock, five recommend 'hold' and two suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 28%.